Tuticorin port to ink pact for container terminal in Nov

Tuticorin port, which has shortlisted five companies to develop its proposed second container terminal, will open request for proposal (RFP) documents in July and sign the concession agreement with the selected company in November 2009.

Speaking to Business Standard, GJ Rao, chairman, Tuticorin Port Trust, said the port would develop its eighth berth as a container terminal.

The five shortlisted companies include Chettinad Logistics, construction-major Larsen & Toubro Limited, Afcons Infrastructure, Oceanic Transport and PSA-Sical Terminals.

However, the shipping ministry had barred PSA Sical from participating in the process. “In 2002, the ministry had introduced a norm not to allow the existing terminal operator to build new terminal since it will create a monopoly,” Rao said.

The construction period for the new terminal will be 24 months from the date of signing the agreement.

Rao said the selected company will invest around Rs 320 crore in the terminal, which will create an additional capacity of 600,000 twenty foot equivalent units (TEUs).

The port has already invested Rs 50 crore in dredging at the site to increase the draft to 12.8 metre from 10.7 metre to handle container vessels up to 5,000-6,000 TEUs.

The new terminal will target cargoes including textiles, automobile components, tea, wood and granite blocks.